Ten Last Minute Tax Tips That Can Help You Save Even More!

Time Running OutHey, tax procrastinators! With just a short white left until taxes are due, take a deep breath, read this article, and then get to work!

1. Don’t Rush

Just because you are filing at the last minute, don’t get flustered and overlook deductions. Take time to review last year’s activity to be sure you claim all the deductions to which you are entitled.

2. Deduct Points

If you bought a new house last year, the points you paid to acquire the mortgage are deductible, as are interest and property taxes. If you refinanced your house last year, the points you paid must be written off over the length of the loan (on a 30-year loan, you can deduct 1/30 each year). Be sure to deduct any remaining unamortized points from the prior loan when you refinance (unless you refinance with the same lender). Learn more about Tax Deductions for Refinancing or New Home Purchase.

3. Educate Yourself

If you spent money on education this year, you’re in luck. If you or your child were a full- or half-time student pursuing a degree, and your income is under $80,000 if single ($160,000 if married filing jointly), you can claim the American Opportunity Tax Credit for 100% of the first $2,000 of fees and tuition you pay for a student’s first two years of college, and 25% of the next $2,000, up to $2,500 of tuition you pay during each of the four years of college. Or you can take a Lifetime Learning Credit of 20% of the first $10,000 of tuition you pay, and you don’t have to be pursuing a degree.

4. Deduct Job-Hunting Expenses

You can deduct all the expenses of hunting for a new job, even if you didn’t find one. This includes travel costs, resume preparation, and more! This credit doesn’t apply to the cost of finding your first job or changing careers.

5. Claim Child Care Expenses

You can get credit for the first $3,000 of expenses ($6,000 for more than one child) for childcare costs while you work or go to school. Deductible expenses include nursery school, private kindergarten, after-school programs, and daycare. If only one spouse works, you can still take the credit if the other parent is a full-time student or is disabled.

6. Deduct Your Work Expenses

If you spend money as part of your job and you aren’t reimbursed, you can deduct these expenses. For example, totaling up the cost of using your car to run errands, office supplies, business dues, and so forth can add up to a healthy deduction.

7. Invest in an IRA

If you aren’t covered by a retirement plan at work, you can deduct $5,500 if you invest in a traditional IRA by April 15. (If you are 50 or older, you can contribute another $1,000 over the regular $5,500 limit to make up for lost time.) If you have a retirement plan at work, your deduction for IRA contributions phases out when your income is between $61,000 and $71,000 for singles ($98,000 and $118,000 for married filing jointly). These amounts change annually.

8. Don’t Blow it Off

Even if you don’t owe taxes, file a tax return if you are due a refund of withheld income taxes. That’s basically free money just waiting for you to claim! If you wait more than two years to file, the IRS is not required to issue you a check.

9. Extend if You Must

Feeling completely overwhelmed? Remember Tip #1. Don’t rush. If you file for an extension by April 15, you’ll have until October 15 to file your return. That extension doesn’t extend the time to pay your taxes – send in what you owe with the extension to avoid penalties for late payment of taxes.

10. File Even if you Can’t Pay

If you owe taxes, send in what you can with the return, and the IRS will bill you for the rest. You can use Form 9465 to ask to make monthly installment payments, but you’ll still owe interest and possibly late payment penalties. It might be time to use these Five Mental Money Jedi Tricks to Build Up Your Rainy Day Fund.

You can find even more great tax advice in our tax article archive.

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